BWA Stock Analysis: BorgWarner | NYSE
Auto Parts | NYSE, USA | Market Cap: 13.198m USD | 12M Return: 52.1% | US0997241064 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 146M
EPS Trend: 87.8%
Qual. Beats: 3
Rev. Trend: 27.0%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
BorgWarner Inc. (NYSE: BWA) is a global automotive supplier that delivers technology solutions for combustion, hybrid, and electric vehicles. Founded in 1928 and headquartered in Auburn Hills, Michigan, the company operates through four segments: Turbos & Thermal Technologies; Drivetrain & Morse Systems; PowerDrive Systems; and Battery & Charging Systems. Its product portfolio spans turbochargers, emissions and thermal systems, transmission chain and friction products, hydraulic controls, torque management devices, power electronics (inverters, onboard chargers, DC/DC converters), rotating electric machines, fully integrated drive modules, electronic control units, and battery packs using both nickel manganese cobalt and lithium iron phosphate chemistries. BorgWarner trades as a large-cap stock on the NYSE, having gone public in 1993, and was formerly known as Borg-Warner Automotive, Inc.
The company sits within the GICS Consumer Discretionary sector under the Automotive Parts & Equipment sub-industry, functioning as a Tier 1 supplier selling components directly to vehicle manufacturers. A key feature of BorgWarners business model is its ongoing shift from legacy combustion-related products toward electrified propulsion offerings, including battery systems, power electronics, and electric drive modules.
- PowerDrive Systems revenue accelerates on rising EV demand
- Turbos and Thermal margins compress as ICE volumes decline
- Battery and Charging Systems expands through Rhombus and integration of acquisitions
| Net Income: 415.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.55 > 1.0 |
| NWC/Revenue: 26.18% < 20% (prev 24.41%; Δ 1.77% < -1%) |
| CFO/TA 0.12 > 3% & CFO 1.73b > Net Income 415.0m |
| Net Debt (1.81b) to EBITDA (2.12b): 0.86 < 3 |
| Current Ratio: 2.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (207.3m) vs 12m ago -4.95% < -2% |
| Gross Margin: 19.46% > 18% (prev 18.41%; Δ 1.06% > 0.5%) |
| Asset Turnover: 101.3% > 50% (prev 97.49%; Δ 3.76% > 0%) |
| Interest Coverage Ratio: 17.98 > 6 (EBIT TTM 1.44b / Interest Expense TTM 80.0m) |
| A: 0.27 (Total Current Assets 7.09b - Total Current Liabilities 3.33b) / Total Assets 13.9b |
| B: 0.50 (Retained Earnings 7.02b / Total Assets 13.9b) |
| C: 0.10 (EBIT TTM 1.44b / Avg Total Assets 14.2b) |
| D: 0.69 (Book Value of Equity 5.62b / Total Liabilities 8.14b) |
| Altman-Z'' = 4.82 = AA |
| DSRI: 0.94 (Receivables 3.09b/3.21b, Revenue 14.3b/14.0b) |
| GMI: 0.95 (GM 18.41% / 19.46%) |
| AQI: 0.97 (AQ_t 0.26 / AQ_t-1 0.27) |
| SGI: 1.02 (Revenue 14.3b / 14.0b) |
| TATA: -0.09 (NI 415.0m - CFO 1.73b) / TA 13.9b) |
| Beneish M = -3.13 (Cap -4..+1) = AA |
As of August 27, 2026, the stock is trading at USD 64.69 with a total of 1,561,159 shares traded. Over the past week, the price has changed by -4.19%, over one month by +2.23%, over three months by -4.40% and over the past year by +52.11%.
Current recommended Stop Loss: 58.40 (which is 9.7% or 2.6 ATR below the current price).
BorgWarner has received a consensus analysts rating of 4.11. Therefore, it is recommended to buy BWA.
- StrongBuy: 7
- Buy: 6
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 79.7 | 23.2% |
P/E Trailing = 32.5628
P/E Forward = 17.4825
P/S = 0.9201
P/B = 2.3997
P/EG = 0.4775
Revenue TTM = 14.3b USD
EBIT TTM = 1.44b USD
EBITDA TTM = 2.12b USD
Long Term Debt = 3.86b USD (from longTermDebt, last quarter)
Short Term Debt = 40.0m USD (from shortTermDebt, last quarter)
Debt = 4.26b USD (from shortLongTermDebtTotal, last quarter) + Leases 197.0m
Net Debt = 1.81b USD (calculated: Debt 4.26b - CCE 2.45b)
Enterprise Value = 15.0b USD (13.2b + Debt 4.26b - CCE 2.45b)
Interest Coverage Ratio = 17.98 (Ebit TTM 1.44b / Interest Expense TTM 80.0m)
EV/FCF = 12.38x (Enterprise Value 15.0b / FCF TTM 1.21b)
FCF Yield = 8.08% (FCF TTM 1.21b / Enterprise Value 15.0b)
FCF Margin = 8.46% (FCF TTM 1.21b / Revenue TTM 14.3b)
Net Margin = 2.89% (Net Income TTM 415.0m / Revenue TTM 14.3b)
Gross Margin = 19.46% ((Revenue TTM 14.3b - Cost of Revenue TTM 11.6b) / Revenue TTM)
Gross Margin QoQ = 19.76% (prev 19.16%)
Tobins Q-Ratio = 1.08 (Enterprise Value 15.0b / Total Assets 13.9b)
Interest Expense / Debt = 1.88% (Interest Expense 80.0m / Debt 4.26b)
Taxrate = 32.49% (230.0m / 708.0m)
NOPAT = 970.9m (EBIT 1.44b * (1 - 32.49%))
Current Ratio = 2.13 (Total Current Assets 7.09b / Total Current Liabilities 3.33b)
Debt / Equity = 0.76 (Debt 4.26b / totalStockholderEquity, last quarter 5.62b)
Debt / EBITDA = 0.86 (Net Debt 1.81b / EBITDA 2.12b)
Debt / FCF = 1.50 (Net Debt 1.81b / FCF TTM 1.21b)
Total Stockholder Equity = 5.63b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.93% (Net Income 415.0m / Total Assets 13.9b)
RoE = 7.37% (Net Income TTM 415.0m / Total Stockholder Equity 5.63b)
RoCE = 15.14% (EBIT 1.44b / Capital Employed (Equity 5.63b + L.T.Debt 3.86b))
RoIC = 9.78% (NOPAT 970.9m / Invested Capital 9.92b)
WACC = 7.95% (E(13.2b)/V(17.5b) * Re(10.11%) + D(4.26b)/V(17.5b) * Rd(1.88%) * (1-Tc(0.32)))
Discount Rate = 10.11% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.18 | Cagr: -4.20%
[DCF] Terminal Value 75.86% ; FCFF base≈1.20b ; Y1≈1.24b ; Y5≈1.38b
[DCF] Fair Price = 95.87 (EV 21.3b - Net Debt 1.81b = Equity 19.5b / Shares 203.7m; r=8.35% [WACC [floored]]; 5y FCF grow 3.23% → 2.50% )
EPS Correlation: 87.84 | EPS CAGR: 9.12% | SUE: 3.13 | # QB: 3
Revenue Correlation: 26.97 | Revenue CAGR: 0.31% | SUE: 0.94 | # QB: 1
EPS current Quarter (2026-09-30): EPS=1.26 | Chg30d=-3.03% | Revisions=-67% | Analysts=14
EPS current Year (2026-12-31): EPS=5.22 | Chg30d=+0.75% | Revisions=+53% | GrowthEPS=+6.3% | GrowthRev=-0.8%
EPS next Year (2027-12-31): EPS=5.94 | Chg30d=+2.04% | Revisions=+36% | GrowthEPS=+13.8% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: +8% (up=19, down=16)